SBI Card listing: After a lacklustre debut on the exchanges today, the SBI Card stocks made a recovery. At around Rs 660, the shares opened at a discount of over 12 per cent from the issue price of Rs 775. The shares of SBI card were trading at Rs 727.15 around 10:43 am on Sensex, down by 3.7 per cent.   

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Technical analyst Nilesh Jain of Anand Rathi Securities does not see this as a worrying development for investors. He said that though the markets fell sharply at the opening and that played on the listing of SBI card as well, the indications for the day look positive for the SBI Card stock. The prices have almost recovered since the time of listing.

Nilesh Jain said that the stock was subscribed at a premium of 60 per cent initially and that has been factored in as the prices have corrected. He added that the company is strong with a large market share and that will definitely play a positive role for the growth of share.

He also does not see any panic selling of the SBI Card stock even if the markets continue a downward trend for some more time. Jain said that he will not be surprised if the stock prices go up t0 Rs 780-790 by the end of the trading session today. 

He recommends a buy on the stock at around Rs 680 levels. The technical analyst also expects the stock to attain levels of Rs 830-840 over a week period.

The SBI Card IPO opened on March 2, comprising a fresh issue of equity shares aggregating to Rs 500 crore and an offer for sale where promoters will offload nearly 13 crore shares. Promoters SBI and Carlyle Group will offload 3.73 cr shares and 9.32 cr shares respectively.

See Zee Business Live TV Streaming Below:

The RS 10000 crore IPO of SBI Cards and Payment Services Ltd, India's largest IPO in over two years, was subscribed over 26 times tnd had closed on 5 March. Meanwhile. The QIB category was subscribed 57.18 times while retail over two.